It's true what they say about life changing in a second, where one is happy and
settled one moment and the next moment one is alone and grappling with tragedy.
The worst hit in any tragedy are children, because they are fully dependant on the
family's elders for their wellbeing. A sudden lack of income can spell doom for
If this scenario scares you (and well it should), it is time to consider investing
in a good term insurance plan for your family's future. However, deciding to do
so is only half the job well done. The rest of the task involves picking the right
plan that will meet your family's every future need.
How can you do this? Answer these questions:
What is the need for term insurance?
Term insurance is the best way to safeguard
your family against an uncertain future. You are present in their lives today and
able to finance all their dreams but what happens in the future when you are absent
and the family desperately needs an income? Not only does term insurance pay all
the important expenses, it also repays unpaid liabilities and takes care of children's
education costs. This way, the family can consolidate itself in your absence. You
can also use term premium calculator to calculate online premium of term plans and
How much term insurance do I need?
The sum assured of the term plan is quite high, but it must be high enough to finance
your family's future requirements comfortably. How much money is needed for the
future? Break expenses down to: Monthly expenses, house maintenance costs, children's
education costs, children's wedding, unpaid debts and emergency expenses. Multiply
this number by 10. Now add the future inflation ratio to it. The figure you now
arrive at is the amount of term insurance your family needs in your absence.
How to choose term insurance plan?
Look for a reputed insurance provider with an excellent claim settlement record.
The insurer must have a hassle-free claim settlement process. Also, most insurers
today allow customers to purchase term plan
online. Since the premium payable on term insurance is quite low, insurers may not
insist on a medical check-up prior to completing the term plan purchase process.
How will my loved ones get the term money?
Talk to your parents and partner about the term insurance plan you have taken and
how it benefits them. More importantly, describe the claim settlement process and
how they must file the term plan claim when the time comes. One of your family members
would have to intimate the insurance company about your death through a sales officer
by providing them with a written intimation & a copy of the death certificate
issued by the concerned government organisation. Keep the insurance documents in
a safe place that these family members can access when needed.